Ministry of Corporate Affairs Orders Probe By Serious Fraud Investigation Office Into Affairs Of DHFL, Five Other Firms

The Ministry of Corporate Affairs (MCA) has ordered an investigation by the Serious Fraud Investigation Office (SFIO) into affairs of Dewan Housing Finance Corp Ltd (DHFL) and five other companies, according to Minister of State for Finance & Corporate Affairs Anurag Singh Thakur.

The minister has stated in his written reply to the Lok Sabha, “The Ministry has ordered investigation of DHFL and five other companies, Immediate Real Estate Pvt Ltd, Tenancity Real Estate Pvt Ltd, RKW Developers Pvt Ltd, Darshan Developers Pvt Ltd and Rajen Skycrapers Pvt Ltd to be conducted by SFIO vide order dated November 6, 2019. The time for completion cannot be indicated as of now”.

Earlier, Members of Parliament Asaduddin Owaisi and Imtiaz Jaleel Syed had asked a question about DHFL, borrowings by the company and involvement of bank officials.

Quoting from a report submitted by the Regional Director (Western Region) of the Registrar of Companies (RoC), the minister, stated as on March 13, 2019, DFHL had taken loans of Rs 95,615 crore from several lenders.

The embattled housing finance company has a total loan portfolio of Rs 95,615 crore, which includes housing loans of Rs44,851 crore, non-housing at Rs13,590 crore, SME loans Rs4,924 crore under the retail loans. Under the wholesale loans, housing of residential projects at Rs15,655 crore, SRA project, Rs7,021 crore, non-housing at Rs9,340 crore and commercial at Rs233 crore.

However, the inspection report submitted by the RoC Regional Director has not gone into the involvement of banks and officials, Thakur stated.